Inflation Persistence in Brazil - A Cross Country Comparison
In: IMF Working Papers
Inflation persistence is sometimes defined as the tendency for price shocks to push the inflation rate away from its steady state?including an inflation target?for a prolonged period. Persistence is important because it affects the output costs of lowering inflation back to the target, often described as the ?sacrifice ratio?. In this paper I use inflation expectations to provide a comparison of inflation persistence in Brazil with a sample of inflation targeting (IT) countries. This approach suggests that inflation persistence increased in Brazil through early 2013, in contrast to many of its